Oil Prices Surge as U.S.-Iran Deal Hopes Fade Amid Strait of Hormuz Attacks

Oil prices rose on Wednesday as doubts about a U.S.-Iran peace deal and attacks on two ships fueled concerns about Middle East supply disruptions.

The Brent futures gained 72 cents, or 0.81%, to $89.63 a barrel by 0053 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 71 cents, or 0.85%, to $83.91.

Both benchmark contracts settled more than $1 higher on Tuesday, marking their highest closes since July 31 and extending gains after jumping about 5% on Monday as hopes for a peace deal between the U.S. and Iran began to fade.

The United States and Yemen's Iran-aligned Houthis reported separate attacks on shipping in the Strait of Hormuz and the Bab el-Mandeb Strait on Tuesday.